Samsung SDS Shares Surge After KKR Investment Plan

By Kwanwoo Jun

Samsung SDS shares surged on Wednesday after U.S. private-equity fund KKR said it would invest $820 million in the South Korean information-technology company.

KKR said earlier in the day that its funds will buy 1.22 trillion won worth of convertible bonds newly issued by Samsung SDS. A separate filing by Samsung SDS said the convertible bonds were equivalent to 8.06% of its outstanding shares.

Shares of the Samsung Electronics-affiliated company jumped 18% to close at 178,600 won in Seoul trading, their sharpest daily gains in 10 months.

Analysts said the rally reflected expectations that the KKR investment and collaboration would help improve Samsung SDS's stock valuation.

Samsung SDS will use the funds to boost its infrastructure and capabilities in key growth areas, including artificial-intelligence transformation services, among other uses.

KKR will serve in an active advisory capacity to Samsung SDS's management on areas such as mergers and acquisitions and capital allocation, they said.

Samsung SDS has been undervalued partly due to its passive stance on the M&A front even though it holds over 6 trillion won in cash, Hanwha Investment & Securities' Kim So-hye said in a note.

The South Korean company is seeking to expand and bolster AI-related businesses, with KKR set to serve as a strategic advisor and partner, the Hanwha analyst said.

"Its ability to execute large deals is expected to significantly improve by leveraging the network of its partner KKR, a global investment firm," Kim said.

Write to Kwanwoo Jun at [e-mail]

(END) Dow Jones Newswires

04-15-26 0307ET